One of the best long-term options on the market that is often mentioned to investors is Canadian National Railway (TSX: CNR). Following the company raising its 2026 outlook, there’s now another reason to love CN stock.
And with another earnings report approaching, it’s a good time to revisit that outlook and the stock’s potential.
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The business behind CN stock
Canadian National operates one of the largest railway networks in North America. The network connects major metro markets in Canada and the U.S., linking Canada’s Atlantic and Pacific coasts with the U.S. Midwest and Gulf Coast.
The sheer size of that rail network is a big part of the appeal of owning CN stock. That rail network was built up over decades, in many cases before the surrounding communities were established. This means that for any competitor to emerge and build an alternative network, it would require enormous amounts of money, land and time.
Turning to volume, Canadian National hauls more than 300 million tons of goods annually, which works out to over $250 billion worth of goods. Those goods can be anything from automotive parts and manufactured goods to crude oil, precious metals and wheat.
In other words, the company offers a wide defensive moat to investors that’s directly tied to the economy.
What’s changed in Canadian National’s 2026 outlook?
The railway previously assumed roughly flat freight volumes for 2026. Following the last quarterly update, Canadian National increased that view to low-single-digit growth.
Canadian National also raised its outlook for adjusted diluted earnings per share, with growth now expected in the mid-to-high-single-digit range for 2026.
In that quarter, CN announced freight volumes increased 5%, led by demand for energy and grain products. Revenue saw an 11% increase to $4.8 billion, and adjusted diluted earnings per share also saw an 11% uptick to $2.08.
A dividend that adds to the appeal
In addition to the strong results and defensive appeal, one of the main reasons why investors turn to CN stock is for the dividend that it offers. The railway offers a quarterly dividend that pays out $0.92 per share.
That works out to $3.66 annually, or a yield of 2.2% as of the time of writing.
Even better, Canadian National has provided investors with annual upticks to that dividend for 30 consecutive years without fail. That’s one of the better streaks in Canada, and includes the most recent uptick, a 3% raise announced in January.
Given an investment of $15,000, that works out to a little over $300 each year. Investors who aren’t ready to draw on that income can reinvest it, allowing it to continue compounding until needed.
This makes CN stock an attractive option for long-term investors looking to build their portfolio through reinvested dividends.
Is CN stock worth buying now?
No stock is without risk, and that includes even an otherwise defensive pick like Canadian National.
Fortunately, Canadian National offers an established business with decades of paying dividends across one of the largest railway networks on the continent.
In my opinion, Canadian National is a great long-term holding to own in any larger, well-diversified portfolio.
Buy it, hold it and watch your income grow.
